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How does the court identify false litigation?

What can be considered a false civil lawsuit is a malicious collusion between parties involved in an attempt to infringe upon the legitimate rights and interests of others through litigation, mediation, etc.

Whoever files a civil lawsuit based on fabricated facts, obstructs judicial order or seriously infringes upon the legitimate rights and interests of others shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or surveillance, and shall also or solely be fined. If the circumstances are serious, , shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years, and shall also be fined.

False litigation is one of the acts of obstruction of justice.